Methacrylates specialist Röhm has agreed to acquire the polycarbonate-based Functional Forms business of Saudi Arabian chemicals and plastics major SABIC for an undisclosed sum.

After completion of the usual prerequisites, including consultation with the workforce, the carve-out of the business from the rest of SABIC’s operations and regulatory approvals, the transaction is expected to close in the first half of 2024.

Röhm touts the planned acquisition, as a “key cornerstone” of its strategy to develop its transparent semi-finished products business into a leading global multi-polymer player.

Led by its recognized brand Lexan, picked up in the 2007 acquisition of GE Engineering Plastics, SABIC’s Functional Forms business manufactures high-end sheet and film products used across a wide variety of industries, ranging from building and construction to consumer electronics, medicine and aviation.

The Saudi-owned business has an extensive global presence with about 700 employees and operations in 19 countries, including production sites strategically located across all continents.
With a merged portfolio worth more than €700 million in sales, the new combined company will have a strong operational global footprint across 14 production sites, and benefit from complementary activities in similar but distinct fields, Röhm said.

Lexan, the Darmstadt-based firm noted, “is an ideal complement” to its acrylic glass brand sold as Plexiglas everywhere except the Americas, where it is known as Acrylite. Commenting on the acquisition. Ronald Ayles, managing partner at private equity investor Advent International, which bought the PMMA powerhouse from Evonik in 2019, said that the polycarbonate film and sheet activities will provide a “unique opportunity for Röhm to build a global leader in this attractive segment.”

Author: Dede Williams, Freelance Journalist